Bilateral trade agreements are agreements between two countries that aim to boost trade between them by reducing trade barriers such as tariffs and quotas. These agreements are often negotiated between countries that have complementary strengths in their economies, and they can be beneficial for both parties.
One example of a bilateral trade agreement is the North American Free Trade Agreement (NAFTA), which was signed in 1994 by the United States, Canada, and Mexico. NAFTA eliminated tariffs on goods traded between the three countries, and it has been credited with increasing trade and investment between the three countries.
Another example of a bilateral trade agreement is the United States-Korea Free Trade Agreement (KORUS), which was signed in 2007 and implemented in 2012. KORUS eliminated tariffs on a wide range of goods and services traded between the US and South Korea, and it has been credited with increasing trade and investment between the two countries.
Bilateral trade agreements can have both positive and negative effects on the economies of the countries involved. On the one hand, they can increase trade and investment between the countries, which can lead to increased economic growth and job creation. On the other hand, they can also lead to job losses in certain sectors and industries that are unable to compete with cheaper imports from the other country.
In summary, bilateral trade agreements are agreements between two countries that aim to increase trade between them by reducing trade barriers such as tariffs and quotas. Examples of such agreements include NAFTA and KORUS. While these agreements can have both positive and negative effects on the economies of the countries involved, they are often seen as beneficial for both parties in the long run.